Latest news with #STKL
Yahoo
2 days ago
- Business
- Yahoo
1 Russell 2000 Stock with Promising Prospects and 2 to Approach with Caution
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns. The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we're here to guide you toward the right ones. That said, here is one Russell 2000 stock that could be the next big thing and two that may struggle to keep up. Market Cap: $674.7 million Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products. Why Are We Cautious About STKL? Annual revenue declines of 4.2% over the last three years indicate problems with its market positioning Smaller revenue base of $742.7 million means it hasn't achieved the economies of scale that some industry juggernauts enjoy Gross margin of 16% is an output of its commoditized products SunOpta is trading at $5.75 per share, or 29.1x forward P/E. To fully understand why you should be careful with STKL, check out our full research report (it's free). Market Cap: $343.8 million With its watches displayed in 20 museums around the world, Movado (NYSE:MOV) is a watchmaking company with a portfolio of watch brands and accessories. Why Do We Think MOV Will Underperform? Annual sales declines of 6% for the past two years show its products and services struggled to connect with the market Operating margin of 4.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments Shrinking returns on capital suggest that increasing competition is eating into the company's profitability Movado's stock price of $15.99 implies a valuation ratio of 0.5x trailing 12-month price-to-sales. Check out our free in-depth research report to learn more about why MOV doesn't pass our bar. Market Cap: $1.27 billion Founded during the emergence of Big Oil in Texas, DXP (NASDAQ:DXPE) provides pumps, valves, and other industrial components. Why Are We Fans of DXPE? Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient Share repurchases over the last two years enabled its annual earnings per share growth of 34.6% to outpace its revenue gains Improving returns on capital reflect management's ability to monetize investments At $80.99 per share, DXP trades at 14.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
SunOpta (NASDAQ:STKL) Delivers Impressive Q1, Stock Soars
Plant-based food and beverage company SunOpta (NASDAQ:STKL) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 10.3% year on year to $201.6 million. The company's full-year revenue guidance of $796.5 million at the midpoint came in 0.7% above analysts' estimates. Its non-GAAP profit of $0.04 per share was $0.02 above analysts' consensus estimates. Is now the time to buy SunOpta? Find out in our full research report. SunOpta (STKL) Q1 CY2025 Highlights: Revenue: $201.6 million vs analyst estimates of $194.5 million (10.3% year-on-year growth, 3.7% beat) Adjusted EPS: $0.04 vs analyst estimates of $0.02 ($0.02 beat) Adjusted EBITDA: $22.39 million vs analyst estimates of $21.27 million (11.1% margin, 5.3% beat) The company slightly lifted its revenue guidance for the full year to $796.5 million at the midpoint from $790 million EBITDA guidance for the full year is $101 million at the midpoint, above analyst estimates of $100.1 million Operating Margin: 5.2%, in line with the same quarter last year Free Cash Flow was $9.55 million, up from -$2.28 million in the same quarter last year Sales Volumes rose 12.2% year on year (23.5% in the same quarter last year) Market Capitalization: $556.9 million "First quarter results exceeded our expectations, and we again delivered double-digit volume growth driven by broad-based gains across segments, products and customers,' said Brian Kocher, Chief Executive Officer of SunOpta. Company Overview Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products. Sales Growth A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $742.7 million in revenue over the past 12 months, SunOpta is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. As you can see below, SunOpta's revenue declined by 4.2% per year over the last three years despite consumers buying more of its products. We'll explore what this means in the "Volume Growth" section. SunOpta Quarterly Revenue This quarter, SunOpta reported year-on-year revenue growth of 10.3%, and its $201.6 million of revenue exceeded Wall Street's estimates by 3.7%. Looking ahead, sell-side analysts expect revenue to grow 8.2% over the next 12 months, an acceleration versus the last three years. This projection is noteworthy and implies its newer products will spur better top-line performance.
Yahoo
01-04-2025
- Business
- Yahoo
3 Reasons to Sell STKL and 1 Stock to Buy Instead
What a brutal six months it's been for SunOpta. The stock has dropped 22% and now trades at $5.02, rattling many shareholders. This may have investors wondering how to approach the situation. Is there a buying opportunity in SunOpta, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it's free. Even with the cheaper entry price, we're cautious about SunOpta. Here are three reasons why you should be careful with STKL and a stock we'd rather own. Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products. Reviewing a company's long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. SunOpta's demand was weak over the last three years as its sales fell at a 3.8% annual rate. This wasn't a great result and signals it's a lower quality business. With $724 million in revenue over the past 12 months, SunOpta is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. All else equal, we prefer higher gross margins because they make it easier to generate more operating profits and indicate that a company commands pricing power by offering more differentiated products. SunOpta has bad unit economics for a consumer staples company, signaling it operates in a competitive market and lacks pricing power because its products can be substituted. As you can see below, it averaged a 16.6% gross margin over the last two years. That means SunOpta paid its suppliers a lot of money ($83.41 for every $100 in revenue) to run its business. SunOpta's business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 18.4× forward price-to-earnings (or $5.02 per share). This valuation tells us it's a bit of a market darling with a lot of good news priced in - we think there are better stocks to buy right now. We'd recommend looking at the Amazon and PayPal of Latin America. The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we're here to help you pick them. Get started by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
Yahoo
27-02-2025
- Business
- Yahoo
SunOpta Inc (STKL) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Debt ...
Revenue: $194 million, up 9% year-over-year. Volume Growth: 13% in Q4, 21% for the full year 2024. Adjusted EBITDA: Increased 20% to $26.1 million. Adjusted EBITDA Margin: Improved 130 basis points to 13.4%. Adjusted Gross Profit: Increased 2% to $31.5 million. Adjusted Gross Margin: 16.1%, down from 17.2% in the prior year. Loss from Continuing Operations: $4.6 million, compared to a loss of $3 million in the prior year. Adjusted Earnings from Continuing Operations: $7.6 million, up from $4.5 million in the prior year. Debt: $265 million, down $25 million from the previous quarter. Net Leverage: Achieved target of 3x, down from 3.4x last quarter. Cash Provided by Operating Activities: $52 million for the full year, up from $4 million in 2023. Cash Used in Investing Activities: $25 million, down from $47 million in 2023. 2025 Revenue Outlook: $775 million to $805 million, growth of 7% to 11%. 2025 Adjusted EBITDA Outlook: $97 million to $103 million, growth of 9% to 16%. Interest Expense for 2025: $24 million to $26 million. Capital Expenditures for 2025: $30 million to $35 million. Free Cash Flow for 2025: $25 million to $30 million. Warning! GuruFocus has detected 9 Warning Signs with STKL. Release Date: February 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue increased by 9% in Q4 2024, driven by a 13% volume growth across segments, products, and customers. Adjusted EBITDA grew by 20%, with a margin improvement of 130 basis points to 13.4%, reflecting strong revenue growth and operational efficiencies. SunOpta Inc (NASDAQ:STKL) completed the start-up phase in Midlothian, resolving previous equipment delays and inefficiencies. The company achieved a significant volume growth of 21% in 2024, indicating strong demand in the food and beverage consumer landscape. SunOpta Inc (NASDAQ:STKL) reduced its debt by $25 million in Q4, achieving a year-end net leverage target of 3x, down from 3.4x in the previous quarter. Gross profit decreased by $3.9 million compared to the prior year, mainly due to increased costs associated with the Midlothian start-up. Adjusted gross margin declined from 17.2% to 16.1% due to incremental depreciation and short-term investments in supply chain efficiencies. The company experienced 10-plus days of downtime at the Midlothian facility due to equipment upgrades, resulting in inefficiencies and waste. Loss from continuing operations was $4.6 million, compared to a loss of $3 million in the prior year period. The company faces supply constraints, particularly in the fruit snacks segment, which may limit its ability to meet demand without additional capacity. Q: Can you elaborate on the composition of revenue growth for 2025? Is it primarily from existing customers or new business wins? A: Brian Kocher, CEO: Our 2025 volume growth is driven by two main factors. First, our categories, such as shelf-stable plant-based beverages and ready-to-drink protein shakes, are growing. Second, our customers are outperforming their categories. About two-thirds of our guidance is based on category and customer growth, while one-third comes from known distribution wins and innovation with our customers. Q: Could you provide more details on the margin opportunity for the year and the sequencing of gross margin? A: Greg Gaba, CFO: We expect gross profit dollars to be 44% in the first half and 56% in the second half. This is due to new roles focused on maintenance and continuous improvement, which will impact the first half more. We anticipate these roles will pay off in the second half, helping us reach an 18% to 19% gross margin by Q4. Q: What are the factors that could lead to achieving the low or high end of your 7% to 11% revenue growth range? A: Brian Kocher, CEO: The range is influenced by timing. If we unlock capacity sooner, we could reach the higher end. The growth is also driven by category expansion and distribution opportunities. We have some innovation and distribution changes expected throughout the year. Q: How do you view the potential for new business in the pipeline, and what areas could see growth? A: Brian Kocher, CEO: Our strategy focuses on expanding share and new product development with existing customers. We also aim to acquire new customers by providing solutions to their challenges. We are confident in our ability to grow beyond the 7% to 11% range. Q: With the recent changes in pricing for plant-based milks at coffee shops, have you seen any changes in demand patterns? A: Brian Kocher, CEO: We support anything that increases penetration and trial. The growth we saw in Q4 and our 2025 outlook reflect increased trial and repeat purchases. The shelf-stable plant-based beverage category continues to grow, supported by these trends. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
